2010 Dec 13th

The November Hoboken Condo Sales Results

November is a tricky month for real estate sales. We never really know how much the holidays come into play.Things are not looking terrible.  In fact, the November average condo sales price of $517k was above that of the past 4 Novembers ($474k in ’09;  $515k in ’08;  $479k in ’07;  and $493k in ’06).

Of course, inventory and inventory build-up matter, too.  But look at this year compared to the past 4 years.  Sure, the number of condo sales is down but no more so than in the past.  What is also down is the number of new units hitting the market. For the second part of the year, we’ve seen sales of about 50 units per month.  Inventory of condos on the MLS is now well under 400.  Even with new listings coming on the market it looks like our absorption rate in Hoboken may be headed toward normal.

Do I know this for a fact?  Of course not.

There’s been lots of talk  about “shadow inventory”, especially with respect to foreclosures.  But the fact is that there have been few to no foreclosures in Hoboken.  We barely see any short sales here.  The foreclosures in the Jersey suburbs are attributed primarily to job losses but Wall Street banks are booking record profits.  How many young Hobokenites work on Wall Street and will benefit from this?
[youtube]http://www.youtube.com/watch?v=OMo7MkeKvt4[/youtube]

Are there people who are thinking of listing who are waiting until after the holidays?  Certainly.  That happens every year.  It will be interesting to see what December and the year-end results show.  Now go do your holiday shopping!

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  1. UPennAlaskan

    Lori, how old is the video? Record bonuses? Last time I checked Q3 was terrible for flow business. Bank revenues plummeted. Volatility in the market was dead. Q4 was better, barely. Most people I know are expecting bonus to be flat to slightly down. And If you happen to work at a 3rd tier firm (RBS, HSBC, BA, etc)….its going to be much worse.

    Even if there were record bonuses…most places have substantial 3 year deferrals that vest in trinkets with clawback. Cash bonuses are not going to reinflate real estate. It’s going to be put back into repairing individual balance sheets as a rainy day fund.

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